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Commission approves two Neighborhood Enterprise Zone certificates — one for new construction, one for rehab
Summary
The commission approved a 15‑year NEZ certificate for new construction at 485 Mary Street and a 15‑year NEZ certificate for rehabilitation at 263 West Muskegon Avenue; staff discussed thresholds and plans for community outreach on NEZ rehab rules.
The Muskegon City Commission on Tuesday approved two Neighborhood Enterprise Zone (NEZ) certificates: a 15‑year certificate for new construction at 485 Mary Street and a 15‑year certificate for exterior rehabilitation at 263 West Muskegon Avenue.
Jocelyn Hines, a development analyst, told the commission that 485 Mary Street was added to the NEZ district after October 2024 map amendments and that the developer anticipates approximately $175,000 in construction costs. Developer Steve Benedict said the sale is pending completion of underwriting and that the NEZ certificate will help the buyer qualify for mortgage underwriting. Commissioners amended the motion on the record to reflect a 15‑year term before voting; the motion passed by unanimous roll call.
The commission also approved a 15‑year NEZ certificate for 263 West Muskegon Avenue, a three‑unit residential building in the Nelson historic area. Hines said the rehab work on the three units totals about $4,000 and that the work had received historic district commission approval. Owner‑applicant Ryan Scribe told the commission he has completed interior upgrades and expects rents to remain the same; he intends to improve exterior curb appeal so the property better matches the block.
Commissioners asked whether rehab certificates should receive the same maximum term as new construction. Staff said historically the commission has granted the maximum term in many cases but acknowledged the city should consider policy clarity. Hines read statutory thresholds for NEZ improvements as discussed in the meeting: improvements done by a licensed contractor for owner‑occupied facilities, for non‑owner‑occupied facilities, and cost caps for owner‑performed work; staff said they plan community engagement to explain NEZ rehab details.
Both NEZ motions passed unanimously. Staff said once the seller completes closing and the certificate is transferred, the buyer would take the remaining term of the certificate.
Ending: Staff indicated they will publish NEZ rehab guidance during upcoming outreach so residents and small developers can understand eligibility and application thresholds.
